PTC Therapeutics Stock Soars on Novartis Licensing Agreement | Global News Avenue

PTC Therapeutics stock (Positive pressure CTOn Monday, the pharmaceutical company announced a nearly $2 billion licensing and collaboration agreement with Novartis, sending its shares soaring 16% (NVS).

PTC said the agreement allows Novartis Completed global development, manufacturing and commercial responsibilities for PTC518, a drug for the treatment of Huntington’s disease Phase 2 study Currently in progress.

In exchange, PTC will receive an upfront payment of $1 billion and the opportunity to receive “development, regulatory and sales milestones” totaling $1.9 billion, a share of U.S. profits and double-digit tiered royalties on sales outside the United States. It added that the two companies would share U.S. profits and losses, with PTC receiving 40% and Novartis receiving 60%.

positive temperature coefficient Chief Executive Officer (CEO) Dr. Matthew Klein explained that the company will use the proceeds to expand its splicing platform and advance its commercial and development portfolio activities.

The transaction is expected to close in the first quarter of 2025.

PTC Therapeutics shares rose to their highest level since May 2023. American Depository Receipts (ADRs) Novartis shares fell about 1%.